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|How to choose the type of loan to invest in American real estate?
What materials need to be prepared?
There are two main types of housing loans in the United States:
floating rate loans and fixed rate loans.
Floating rate loan (ARM) is usually divided into three parts:
3/1, 5/1 and 7/1ARM, which means that the interest rate is fixed in the first three, five and seven years, and then the interest rate fluctuates according to Libor and other indicators.
For example, in Los Angeles, California, a home of $500,000 is purchased with a 40% down payment and a 5/1ARM loan with a fixed interest rate for the first five years, floating from the sixth year.
The common fixed-rate loan has 15 or 30 years, and the annual interest rate is fixeD.In the short term (within 3-5 years), the interest rate of floating rate loan is about 0.
5-1% lower than that of fixed rate loan, but in the long run, the interest rate of floating rate loan rises sharply.
Therefore, for short- and medium-term investors, floating rate loan is a relatively worthwhile choice.
Fixed interest rates are more appropriate for buyers who pursue stability and have low long-term risk tolerance.
Both types of loans have their advantages and disadvantages.
Buyers can proceed according to their own financial situation.
After finding a suitable lending institution, the applicant will apply for a loan.
Some of the materials that the applicant needs to prepare include:
1. Income Certificate:
Employer's Letter or Company's Business License 2. Certificate of Deposit:
Recent monthly bank statements require that you see the down payment portion and have an account in the United States.
3. Identity certificate:
valid entry visa and passport 4. Credit record:
If you are qualified to apply for a loan, then the lender will start the following work:
to examine the property rights of the house you want to buy, from contacting the lender to the bank, then to the qualification and finally to lend, every link needs to be very careful, as long as it is provided fully, effectively and in accordance with the requirements of the bank.
True information, in the United States, it is also feasible to buy a house with a loan.
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